Equity markets opened on a mixed note Monday, with the benchmark BSE Sensex trading marginally higher while the NSE Nifty slipped into negative territory, as foreign institutional investors (FIIs) continued their selling spree amid global uncertainties.

The 30-share Sensex was trading at 79,272.99, up 49.88 points or 0.06 per cent from its previous close, while the broader Nifty50 declined 19.10 points or 0.08 per cent to 23,985.65 as of 9.40 AM.

ITC emerged as the biggest laggard among Nifty constituents, plunging 5.40 per cent, followed by Kotak Bank (-1.82 per cent), Tata Steel (-1.51 per cent), BPCL (-1.50 per cent), and Coal India (-1.42 per cent). On the gaining side, Bajaj Finance led with a 2.29 per cent increase, while IT majors Infosys and HCL Tech rose 1.25 per cent and 1.12 per cent respectively. Titan and Bajaj Auto rounded out the top gainers, advancing 1.21 per cent and 1.03 per cent.

The market sentiment remains cautious after FIIs sold equities worth Rs 11,041.60 crore over the previous week. “The external macro construct continues to be unfavourable with the dollar index at 109 and the 10-year US bond yield at 4.62 per cent. The FIIs are likely to continue selling till the yields decline and the dollar stabilises,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Investors are closely watching TCS’s upcoming Q3 results scheduled for January 9th and the US Non-Farm Payroll data release on January 10th. The IT sector is in focus as both TCS and Tata Elxsi prepare to announce their quarterly numbers.

The auto sector maintains its positive momentum following strong December sales numbers from major manufacturers. “Domestically the December auto numbers indicate that the much talked about urban demand deceleration is exaggerated,” Vijayakumar added.

In the commodities space, gold prices retreated 0.5 per cent to $2,640 an ounce as traders await US economic data for clues on interest rate trajectories. Oil markets continued their upward trend, with Brent crude gaining 2 per cent to trade above $76 per barrel, reaching its highest level in over two months.

Technical analysts suggest a cautiously optimistic outlook. “The market has formed a reversal pattern on both daily and weekly charts, indicating the potential for a further uptrend from current levels,” noted Shrikant Chouhan, Head of Equity Research at Kotak Securities. He identified the 23,900-23,750 range as a key support zone for the Nifty.

Market participants are also keeping a close watch on President-elect Trump’s upcoming policies and their potential impact on market trends. “Traders should watch how Trump’s actions post-inauguration influence market trends, with Nifty’s direction hinging on these developments,” remarked Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.

The FMCG sector is expected to show strength following positive quarterly updates from Marico and Dabur India, while pharmaceutical stocks are anticipated to benefit from the rising USD/INR. The defense sector outlook remains positive, buoyed by expectations of increasing exports and strong domestic orders under the Make in India initiative.